The Top Funds Over Five Years: Bond Funds Take the Lead

by Charles Rotblut, CFA

The Top Funds Over Five Years: Bond Funds Take The Lead Splash image

Context is always important when looking at historical return data, especially five-year performance for mutual funds.

The period covered in this year’s Top Funds Over Five Years article starts on January 1, 2007—months before the severe bear market started. As of the end of 2011, neither the S&P 500 index nor the broader Wilshire 5000 index had rebounded back to the price levels they traded at at the start of the five-year period that this article covers.

The five-year period also saw a large drop in interest rates. Yields on the benchmark 10-year Treasury bond fell from 4.71% on December 29, 2006, to 1.87% on December 30, 2011. Since bond yields and prices are inversely related, bonds rallied over the past five years.

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Charles Rotblut, CFA is a vice president at AAII and editor of the AAII Journal. Follow him on Twitter at


John from New York posted over 2 years ago:

I don't recall ever seeing an analysis of the impact of a change in leadership on the performance of a fund.

I realize that the results of such a change might take a long time to emerge, and that obviously such a change could have negative as well as positive results.

But still, could there be a conclusion or signals that investors could use to better foresee potential gain or danger to a change in fund management? Has anyone produced such an analysis? This would be a worthwhile effort if such a study has not been produced. I apologize in advance if such a work already exists.

Roger from South Carolina posted over 2 years ago:

Very interesting sector results over the five year period. Now,if we could only predict what and how the politians will impact the next five year period, we would all be in good financial condition.

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